.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness can escalate in the second half of the year, yet he performs not strongly believe the U.S. is actually heading in to a recession.Global equities found stinging auctions recently as capitalists digested unstable financial records out of the united state which brought up fears about an economical decline worldwide's largest economic situation. It also raised questions concerning whether the Federal Get needed to become much less hawkish with its own monetary plan standpoint. The reserve bank kept prices on hold in overdue July at a 23-year high.When inquired about the overview for the USA economic climate, Ermotti claimed: "Certainly not essentially a recession, yet certainly a lag is actually feasible."" The macroeconomic indicators are actually not clear enough to discuss downturns, as well as in fact, it is actually possibly premature. What we understand is actually that the Fed has good enough capacity to action in and also assistance that, although it is actually visiting take some time, whatever they carry out to become then sent into the economic condition," the CEO told CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS expects that the Federal Get are going to cut prices by at least 50 manner factors this year. Right now, investors are split in between a fifty as well as a 25 basis point cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our experts are very likely to observe greater market dryness in the second fifty percent of the year, somewhat because of the USA political election in Nov." That is actually one variable, however likewise, if I examine the overall geopolitical image, if I check out the macroeconomic image, what we observed in the final couple of full weeks in regards to dryness, which, in my point of view, is a crystal clear sign of the fragility of some factors of the unit, u00e2 $ u00a6 one ought to anticipate most definitely a greater degree of dryness," he said.Another uncertainty going ahead is financial policy and also whether central banks will need to reduce costs a lot more boldy to deal with a lag in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices two times this year. The International Reserve Bank and also the Financial Institution of England possess both announced one slice until now." Understanding the events which are theu00c2 unknowns imminent like the USA governmental vote-casting, our experts ended up being satisfied with an extremely low dryness, currently our company are actually changing to an even more usual routine," Bruno Verstraete, creator of Lakefield Riches Management told CNBC Wednesday." In the situation of UBS, [even more volatility is actually] not necessarily a negative factor, considering that additional volatility means additional investing profit," he included.